When men have children, they tend to experience a boost to their income, yet the average mother loses around half of their earnings for at least 10 years (and sometimes longer).
In this episode, Jenny Rolfe-Wallace speaks with Ana Kresina, about the motherhood penalty and its impact on women's financial security, the need for a shift in societal and economic policies to address gender inequality, and the importance of valuing and supporting women in the workforce (and in the home).
About Ana:
Hailing from Canada, Ana is the author of "Kids Ain't Cheap: How to plan financially for parenthood and your family's future". She's also a financial educator, speaker, and parent who works in the financial technology sector.
Ana is the co-host of of Australia’s leading podcast, Get Rich Slow Club, and has been featured in the ABC, the Australian Financial Review, AusBiz, Channel 9's Today Show, the Girls That Invest podcast and more.
In her free time, Ana loves to adventure, spend time with family, and play board games. She’s travelled to over 50+ countries and now calls Australia home. She can’t live without cheese.
Website: https://www.anakresina.com/
LinkedIn: https://www.linkedin.com/in/anakresina/
More about the motherhood penalty:
- https://treasury.gov.au/sites/default/files/2023-03/p2023-372004.pdf
- https://womensagenda.com.au/latest/did-you-all-enjoy-the-international-women-day-cupcakes-thats-great-now-lets-talk-about-making-a-real-difference/
- https://www.pmc.gov.au/sites/default/files/2023-05/Roundtable-Discussion-Paper-Family-and-Unpaid-Work_0.docx
Takeaways
- The motherhood penalty refers to the additional disadvantages that mothers face in the workforce, including lower financial compensation and decreased career opportunities.
- Employers need to shift their thinking and see mothers as valuable resources instead of perceiving them as unreliable or less productive.
- Superannuation policies should be revised to ensure that super guarantee is paid on paid parental leave, as this can significantly impact women's financial outcomes in retirement.
- Individuals can take steps to reduce the impact of the motherhood penalty, such as negotiating flexible work arrangements, seeking financial advice, and advocating for policy changes.
- Societal and economic policies need to be reformed to address gender inequality and improve women's financial equality, including addressing the gender pay gap, promoting job sharing and flexible work arrangements, and valuing the work of women in sectors like childcare.
- Resources for further exploration include books like 'Kids Ain't Cheap' by Anna Kresina, as well as other research and publications on gender equality and financial empowerment.
